Features of the UAE banking system

The banking system of the United Arab Emirates is deservedly considered one of the most stable and reliable in the world. Its impeccable reputation attracts both large international investors and the local population, who prefer to entrust their funds to reliable institutions. The key to this success lies not only in the country's rich oil resources, but also in the proactive and strict policies of the Central Bank of the UAE (CBUAE), aimed at preventing risks and maintaining financial stability. Let's take a look at three key aspects that distinguish the UAE banking system and ensure its stability.

1. Working hours

The standard working hours for offices are five days a week, Sunday through Thursday, from 8 a.m. to 2 p.m. local time, complemented by the availability of 24-hour terminals in different areas of the city. Moreover, the efficient operation of the system, including fast transaction processing and prompt response to requests, is also the result of strict control and the implementation of modern technologies.

2. Know Your Customer (KYC) policy and anti-money laundering

Strict adherence to the KYC (Know Your Customer) principle is the cornerstone of the stability of the UAE banking system. This principle involves thoroughly verifying the identity of each customer, confirming their address of residence, analyzing their financial activities, and preventing potential risks associated with money laundering and terrorist financing. The CBUAE not only sets strict KYC standards, but also regularly conducts inspections and audits of banks to ensure compliance with these standards at the highest level. This strict policy is a guarantee of security and trust for both customers and international partners.

3. Regulation of free zones and innovation in the financial sector

The Emirates are actively developing free zones that offer favorable conditions for international financial institutions. This policy helps attract foreign investment, stimulates competition, and influences the development of innovative financial technologies. The regulation of free zone companies in the financial sector is also strictly controlled by the CBUAE, which guarantees high security standards and prevents potential risks. The active introduction of digital technologies, the development of internet banking, and mobile payment systems provide customers with a wide range of modern services, increasing the convenience and efficiency of banking services.

4. Types of accounts

Depending on their needs, customers can open:

A savings account with a small interest rate.
A checking account with a checkbook for everyday transactions.
A term deposit account offering higher interest rates for freezing money.

5. Account maintenance fees

In most cases, banking services are provided free of charge, but it is important to maintain an average minimum balance, otherwise a fee will be charged. The recommended average monthly balance may vary depending on the bank. Cash withdrawals at ATMs of the same name do not incur a fee, but international transfers are subject to a fee of 25 dirhams per transaction.

The country's banking system is quite diverse, and banks are classified according to the type of customers and services provided:

Commercial. They provide a wide range of services to both private and corporate customers.

Investment. Specialize in investment operations, asset management, and support for mergers and acquisitions.

Industrial. Provide financial support to industrial enterprises.

Islamic. Operate in accordance with Sharia principles, do not use interest in their operations, and offer alternative investment options.

Specialized. Focus on specific sectors of the economy (e.g., real estate, energy, etc.).

Thus, the stability of the UAE banking system is the result of a complex interaction of strict regulation, an innovative approach, and a commitment to high standards of customer service. The CBUAE's strict control, KYC policy, and active development of specialized free zones contribute to investment, economic growth, and strengthening the UAE's position as a major international financial center.